After digesting the 2024 federal budget, here are some points that may be related to your finances:
COST OF LIVING
In 2024/25 an energy rebate of $300 will be provided to all households and $325 for eligible small businesses.
Pharmaceutical Benefits Scheme Changes
The maximum PBS co-payment will be frozen for 5 years for pension and concession cardholders and one year for Medicare cardholders. The maximum PBS co-payment for Medicare cardholders is currently $31.60 and will not be indexed from 1 January 2025 to 31 December 2025. The maximum PBS co-payment for commonwealth concession card holder is $7.70 and will not be indexed until 31 December 2029.
SUPERANNUATION
From 1 July 2024 the concessional contribution threshold will be increased to $30,000 from $27,500 and non-concessional contributions will be increased to $120,00 from $110,000.
From July 2025, parents who use the government funded paid parental leave will be able to receive superannuation contributions of 12%.
Reduction of tax concessions for super balances over $3m.
SOCIAL SECURITY
Increase to working age Jobseeker Payments
Jobseeker Payment will be extended to single recipients with partial work capacity to a maximum of 14 hours per week and will receive an extra $54.90 per fortnight from 20 September 2024.
Increase in Rent Assistance
Maximum rates of rent assistance will increase by a further 10% for eligible recipients.
Aged Care Packages
Increase to Home Care Packages to provide for ongoing care for older individuals who are looking to remain in their home. A single assessment system will commence from 1 July 2025.
Deeming Rates - will remain frozen until 1 July 2025 benefiting around 450,000 pensioners.
PERSONAL TAXATION
Revised stage 3 tax cuts will be effective from 1 July 2024 and is summarised below:
- Taxable income up to $18,200 will not be taxed.
- Individuals with income from $18,201 to $45,000 will have the tax rate reduced from 19% down to 16%.
- An increase in income threshold for tax rate of 30% from $45,001 to $ 135,000.
- An increase in income threshold for tax rate of 37% from $135,001 to $190,000.
- Individuals earning above $190,000 will have a tax rate of 45%.
- Medicate surcharges may be applicable in addition to these rates.
SMALL BUSINESS TAXATION
Instant Asset Write-off
Businesses with annual turnover of $10m or less will be able to immediately deduct the full cost of eligible assets that cost less than $20k that are first used or installed ready for use between 1 July 2023 and 30 June 2025.
As with all budget announcements, the measures are proposals only and need to be enacted by Parliament.
If you have any questions about how these announcements might affect you, feel free to reach out to the team at Hunter FP for assistance.
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